NY Times Files Lawsuit Against Microsoft and OpenAI Over Chatbot Training

• NY Times sues Microsoft, OpenAI over chatbot training with news stories.
• Claims AI bots divert web traffic, impacting ad revenue and subscriptions.
• OpenAI surprised, commits to respecting rights; Microsoft silent.

In a significant legal development, The New York Times has officially filed a lawsuit against Microsoft and OpenAI, alleging that the tech giants are jeopardizing its business model by using news stories to train online chatbots. The lawsuit contends that the companies are essentially appropriating billions of dollars’ worth of journalistic work, as AI programs like OpenAI’s ChatGPT reproduce Times’ content verbatim for users seeking information online.

The crux of the matter lies in the impact on web traffic, a vital component of The New York Times’ advertising revenue and online subscriptions. The AI chatbots, according to the Times, divert this traffic away from news outlets and original content creators, making it less likely for users to visit the source directly.

The legal action was initiated after apparent breakdowns in talks between The New York Times, Microsoft, and OpenAI, which began in April. Ian B. Crosby, partner and lead counsel at Susman Godfrey representing The Times, emphasized that these AI bots are essentially competing with the very content they are trained on.

OpenAI responded to the lawsuit through a prepared statement, expressing surprise and disappointment, while reiterating the company’s commitment to respecting content creators’ rights and collaborating to benefit from technological advancements and new revenue models.

Microsoft, which has a partnership with OpenAI allowing it to leverage the company’s AI technology, did not immediately respond to requests for comment.

AI companies, including OpenAI and rival Anthropic, have attracted substantial investments, with Microsoft being OpenAI’s primary backer, having invested at least $13 billion since their partnership began in 2019.

The New York Times’ lawsuit is part of a growing trend, as more legal actions against OpenAI for copyright infringement continue to emerge. Writers, including comedian Sarah Silverman, have sued the company, claiming their works were used without permission to train AI models.

The Times did not specify the damages it seeks but indicated that the legal action aims to hold the tech companies accountable for the alleged unauthorized use of its work. Additionally, the paper is requesting the court to order the destruction of AI models or datasets that incorporate its content.

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